Program Implementation Plan Template

1) Program Name: Local Integrated Demand Side Management Marketing Program ID#: 3260 SDG&E Program Type: Third Party Program

2) Program Description The California Long Term Energy Efficiency Strategic Plan (Strategic Plan) encourages programs that integrate the full range of demand-side management (DSM) options including energy efficiency (EE), demand response (DR), and distributed generation (DG) as fundamental to achieving California’s strategic energy goals. This program implementation plan (PIP) presents the integrated marketing efforts that San Diego Gas and Electric Company will undertake to present a local, holistic picture of DSM options for all customer classes. In coordination with the statewide IDSM task force, SDG&E defines integrated marketing as “marketing efforts that seek to integrate demand-side energy management options to the greatest extent possible (DR, DG, and EE/ESAP) in a way that make sense for each customer.”

SDG&E received funding for Integrated DSM Marketing for the year 2012 in D.12-04-045. Based on direction provided in the Demand Response guidance ruling and approved decision, SDG&E is requesting continued funding for Integrated Local Marketing for 2013 and 2014. This is a program that has not been previously funded through an Energy Efficiency proceeding, so the new PIP template is being used here.

3) Total Projected Program Budget and Savings This is a non-resource program with no projected savings. Total projected budget for the IDSM marketing efforts in 2013 and 2014 is $3,764,307.36. This represents funding from both the EE and DR portfolios.

The EE portion of the IDSM local ME&O effort is $1,927,415.62, which represents 52% of the total effort. The DR portion of the IDSM local ME&O effort is $1,789,839.32, which represents 48% of the total effort.

There is no DG contribution to the IDSM marketing budget as SDG&E does not administer those programs in our service territory.

4) Table 1: Total Projected Program Budget & Savings by Subprogram Not applicable, there are no sub-programs.

5) Table 2: Total Projected Program Savings by IOU Not applicable, this is a non-resource program.

6) Short description of each subprogram Not applicable, there are no sub-programs.

Sub-Program

1 1) Local IDSM ME&O Local Marketing 2) Sub-Program ID number: 3260 (EE) / 3286 (DR) 3) Type of Sub-Program: _X Core __Third Party __Partnership 4) Market sector or segment that this sub-program is designed to serve

All – integrated marketing efforts will reach out to all customer classes

5) Is this sub-program primarily a: a. Non-resource program X Yes__ No b. Resource acquisition program ___ Yes X No c. Market Transformation Program ___ Yes X No

6) Indicate the primary intervention strategies: a. Upstream ___ Yes X No b. Midstream ___ Yes X No c. Downstream ___ Yes X No d. Direct Install __ Yes X No. e. Non Resource X Yes __ No.

7) Projected Sub-program Total Resource Cost (TRC) and Program Administrator Cost (PAC) TRC ___ PAC ___

8) Projected Sub-Program Budget N/A – there are no subprograms.

Table 1: Projected Program Budget, by Calendar Year

See Table 1 of Integrated Demand Side Management Program Implementation Plan for budget.

Program Year DEMAND RESPONSE 2013 2014 Total Admin ($) $483,079.44 $483,079.44 $ 966,158.88 General overhead ($) $ 42,615.22 $ 42,615.22 $ 85,230.44 Incentives ($) $ - $ - $ - Direct Install Non- $ - $ - $ - Incentives ($) Marketing & Outreach $369,225.00 $369,225.00 $ 738,450.00 ($) Education & Training $ - $ - $ - Total Budget $894,919.66 $894,919.66 $1,789,839.32

9) Sub-Program Description, Objectives and Theory

a) Sub-Program Description and Theory:

2 Pursuant to D.12-05-015 Ordering Paragraph 133, which states that the IOUs shall “include in their revised Integrated Demand-Side Management Program Implementation Plan a clear plan to pursue integrated marketing in the 2013-2014 program cycles,” SDG&E is establishing a new program for local IDSM marketing efforts. The main objective of IDSM local marketing efforts will be to continue to funnel customers from an awareness of our broad portfolio of programs to interest in specific and relevant programs for their needs. This will be done by continuing to promote the impact that integrated solutions can have for customers, with continued reach driving segmented efforts to increase interest in specific programs across the EE (including low-income,) DR, and DG portfolio of programs.

Local IDSM marketing efforts are an important link between the broader scope of statewide marketing efforts and individual program tactics. In the marketing model based on a tiered approach, local presentation of integrated portfolio solutions offered by SDG&E will help customers of all classes make the link between the higher level strategic messaging presented by statewide marketing and the most relevant and impactful programs presented in local program marketing efforts.

Per the guidance provided in D12-05-015, the local IDSM marketing program will include “marketing strategies, messages and material that simultaneously promotes demand-side resources to customers and seeks to educate them about the benefits of pursuing these resources where feasible.” The plans related to IDSM marketing will “include the development of new marketing collateral and strategies that offer ‘bundles’ of Demand-Side Management resources/programs targeted to specific customer groups via ‘one stop’ approaches where possible.”

The integrated awareness and education initiatives are intended to increase overall awareness, understanding of, and interest in SDG&E broad portfolio of solutions by communicating the following:

 The breadth of integrated solutions that SDG&E offers;  The benefits that an integrated solution can deliver to the customer; and  The availability of customized solutions that can be tailored to individual customer needs.

IDSM local marketing will extend across all customer segments for both residential and business customers. It will achieve the specific awareness and interest goals through the following efforts:

 Localized research on customer attitudes and perceptions;  Education and awareness umbrella campaigns;

3  Targeted business and residential engagement and outreach; and  Continued development of interactive media based promotion.

As customers move from awareness of the entire integrated portfolio of EE and DR programs to interest in a specific type of program, campaigns and specific materials are needed to move the customer towards action/enrollment in a program. To this end, SDG&E is also requesting specific program marketing funding within each Energy Efficiency program or sub-program. Marketing dollars from specific programs will focus on “closing the sale” – creating customer desire out of easy to understand materials that clearly explain the benefits of that program. The marketing plan for each individual energy efficiency program is also a component of education, awareness and outreach and all marketing/ communication efforts will be complementary. b) Sub-Program Energy and Demand Objectives- Table 2. Projected Sub-Program Net Energy and Demand Impacts, by Calendar Year Not applicable for this program.

4 c) Program Non-Energy Objectives:

Table 3: Proposed Program Performance Metrics PROGRAM PERFORMANCE METRIC (PPM) Metric Type LOCAL INTEGRATED MARKETING, EDUCATION AND OUTREACH (ME&O) 1. SDG&E will report successful integrated marketing efforts 2a to the IDSM task force on a quarterly basis 2. During the period of 2013-2014, awareness and knowledge of integrated solutions offered by SDG&E will increase over a baseline to be set by SDG&E through new 2b PPMs Attitude, Trial, Awareness and Usage studies to be conducted in 2013. 3. SDG&E will issue an annual report that identifies how well “integrated” SDG&E IDSM Marketing is, and including 2b lessons learned and best practices shared with other utilities. (Y/N)

Baseline data for Integrated Marketing at SDG&E does not currently exist. Therefore, funding dedicated to new research is one component of this overall program request.

d) Cost Effectiveness/Market Need: This is a non-resource program.

Past program and process evaluations on Statewide Marketing, Education and Outreach (ME&O) provide guidance and recommendations on modifications to the statewide marketing effort. The 2006-2008 Process Evaluation study conducted by Opinion Dynamics states:

“While the IOUs and SWM&O implementers define the “action” role as the role of the utility programs, the mechanism for moving consumers from general awareness and/or “propensity” to act to take action is unclear. It is difficult to ascertain how the consumer moves from general awareness to other steps such as where they can go to acquire energy efficiency knowledge, which units are the most energy efficient, and what they need to do for their home (i.e., how to take action).” 1

Based on this, the process evaluation Recommendation 2 states,

“To ensure that the SMW&O efforts ultimately lead customers to action, the SWM&O implementers and IOUs need to define a clear

1 Opinion Dynamics Corporation, “2006 - 2008 Statewide Marketing and Outreach Process Evaluation” October, 2008. Page 2. 5 path to action to move those exposed to messaging to the intended outcome, adoption of energy efficient measures, such as clearly stating the role that the website, 800 number, or other tools that will lead consumers to more actionable information and/or to IOU DSM programs.” 2

SDG&E plans this local integrated marketing effort as a way to address the gap between the statewide effort and specific action to be taken through local program efforts. Through close coordination with the statewide marketing effort, the Local Integrated Marketing campaigns will aim to move customers along the path from general knowledge and awareness to interest in SDG&E’s offered solution. Specific program marketing efforts will then continue the customer transition from interest and desire into action with the prescribed SDG&E programs or services.

Additional studies underscore the importance of local marketing efforts with the utility as the main brand behind the message. In a 2009 study completed by Interbrand, findings state that,

• “Despite 26% of respondents saying that Flex Your Power (FYP) had a unique message about energy, a detailed examination shows that its key messages and actions are equally credited to other brands, as well as a fictional brand (Green Power). • The utility brands in the study often performed at parity with or above FYP on message comprehension measures;3

Utility brands were equally credited with motivating energy saving actions and associated with smart energy use. Utility customers most expect to hear information from their local provider, and oftentimes they attribute messages from other entities to the utility. It is therefore important that we maintain our own marketing and messaging in order to minimize customer confusion and drive home the various benefits of our programs and services through an integrated marketing effort.

Finally, the IDSM Local Marketing program is addressing several directives in the 2012-2014 Demand Response Decision 12-04-045.

While the Utilities have begun to use integrated marketing funding to streamline their messaging to customers, we consider the IDSM marketing category an interim measure toward complete integration. The utilities should be making further strides towards integrated marketing.4

2 Ibid. Page 9. 3 Interbrand; Final Draft Public Brand Assessment Report; November 16 2009, page 11. 4 Decision Adopting Demand Response Activities and Budgets for 2012 Through 2014. D12-04-045. April 19, 2012. Page 85.

6 e) Measure Savings/ Work Papers: Table 4. Work Paper Status Not applicable for this program.

10) Program Implementation Details

a) Timelines:

Table 5: Sub-Program Milestones and Timeline Milestone Date CPUC Approved Decision on 2013-2014 EE Application Q4 2012 Integrated Marketing Plan Development 3/31/2013 New marketing collateral developed 4/1/2012-5/31/2012 Integrated campaigns launched 6/1/2013 Sharing of best practices with IDSM task force 4/1/2013- 12/31/2014

b) Geographic Scope: The geographic scope of the program will depend on the bundled solutions being offered; all geographic regions within SDG&E’s service territory will receive some form of IDSM marketing or outreach.

Table 6: Geographic Regions Where the Program Will Operate Geographic Local IDSM Region Marketing CEC Climate Zone 1 x CEC Climate Zone 2 x CEC Climate Zone 3 x CEC Climate Zone 4 x CEC Climate Zone 5 x CEC Climate Zone 6 x CEC Climate Zone 7 x CEC Climate Zone 8 x CEC Climate x

7 Zone 9 CEC Climate Zone 10 x CEC Climate Zone 11 x CEC Climate Zone 12 x CEC Climate Zone 13 x CEC Climate Zone 14 x CEC Climate Zone 15 x CEC Climate Zone 16 x

8 c) Program Administration All program components to be administered by SDG&E

Table 7: Program Administration of Program Components Implemente d by IOU Staff? (X = Program Name Program Component Yes) Localized research X Education and Awareness umbrella IDSM Local campaign X Marketing Targeted outreach X Interactive media X d) Program Eligibility Requirements: Table 8: Customer Eligibility Requirements (Joint Utility Table) Not applicable for this program.

Table 9: Contractor/Participant Eligibility Requirements (Joint Utility Table) Not applicable for this program. e) Program Partners: Table 10: Manufacturer/Retailer/Distributor Partners Not applicable for this program. f) Measures and incentive levels: Table 11: Summary Table of Measures, Incentive Levels and Verification Rates Not applicable for this program. g) Additional Services: Table 12: Additional Services Not applicable for this program. h) Sub-Program Specific Marketing and Outreach: Program is marketing and outreach based; descriptions/timelines are found in relevant sections of the PIP. i) Sub-Program Specific Training: Not applicable for this program. j) Sub-Program Software and/or Additional Tools: Table 13: Post-implementation Audits Not applicable for this program.

9 k) Sub-Program Quality Assurance Provisions: Table 14: Quality Assurance Provisions Not applicable for this program.

l) Sub-program Delivery Method and Measure Installation /Marketing or Training: Not applicable for this program.

m) Sub-program Process Flow Chart: Not applicable for this program.

n) Cross-cutting Sub-program and Non-IOU Partner Coordination: Marketing for all other IOU EE and DR programs will be coordinated with the Local IDSM Marketing program. The SDG&E Customer Programs Department, through which all EE and DR programs are administered, has a centralized marketing team responsible for all three tiers of marketing, including SW ME&O, Local IDSM Marketing, and individual local program marketing.

Table 15: Cross-cutting Sub-program and Non-IOU Partner Coordination Sub-Program Name Other IOU Sub-program Coordination Expected Name Mechanism Frequency (Insert all SDG&E SDG&E Customer Part of daily job Customer Programs) Programs function Marketing Team Coordination Partners Outside CPUC IDSM Task Force Members IDSM reporting Quarterly and Task Force meetings CCSE Statewide ME&O Monthly team

o) Logic Model: Logic model diagram appended at the end of the PIP.

11) Additional Sub-Program Information

a) Advancing Strategic Plan Goals and Objectives: To accomplish the stated goals of the State of California, including the goals of A.B. 32 and the California Long Term Energy Efficiency Strategic Plan, Californians need to make energy efficiency “a way of life.” California residents and businesses will have to better understand

10 and change energy use behavior for California to achieve its goals. The new statewide marketing effort will start customers down the path, but as described on page 309 of D-12-05-105, “statewide marketing and local marketing should still be coordinated and the strategies for each should be designed to complement each other.” IDSM local marketing is a necessary step in the path to helping customers move from broad understanding of solutions to individual purchase and use of smarter products and services. b) Integration

i. Integrated/coordinated Demand Side Management: This is an IDSM program, which necessitates funding from both DR and EE in order to promote integrated solutions. There is no DG contribution to the IDSM marketing budget as SDG&E does not administer those programs in our service territory.

Table 16: Non-EE Program Information Sub-Program Name Rationale and General Approach for Integrating Across Resource Non-EE Sub-Program Budget Types Demand Response IDSM $1,789,839.3 Marketing 2 N/A

ii. Integration across resource types Not applicable c) Leveraging of Resources: The local IDSM marketing program will leverage the investment associated with efforts identified in the Statewide Marketing, Education and Outreach application. d) Trials/ Pilots: Not applicable. e) Knowledge Transfer: Local IDSM Marketing efforts will be reported through the statewide IDSM Task Force. As described in Task 8 in the statewide IDSM PIP, the Task Force will work with the SD&GE marketing and outreach team to leverage statewide awareness and coordinated program messaging, and education efforts directing customers to utility local integration efforts and offerings.

11 12) Market Transformation Information: Not applicable

13) Additional information as required by Commission decision or ruling or as needed: The DSM Coordination and Integration chapter of the Strategic Plan envisions that DSM options be offered as elements of an integrated solution that supports energy and carbon reduction goals immediately. Through the 2012-2014 Guidance Ruling for the Demand Response Application,5 the ALJ provided direction to the Utilities regarding the IDSM portion of their DR Application. In an effort to align DR and Energy Efficiency funding for IDSM activities, the Ruling directed the Utilities to use 2012 as a bridge year for DR IDSM funding and beyond 2012 all IDSM activities would be proposed and approved through the energy efficiency proceeding.

Ordering Paragraph of the 2012-2014 Demand Response Decision D.12-04-045 states that the IOUs “may request funding for post-2012 Integrated Demand-Side Management activities in their request for 2013-2014 Energy Efficiency funding. This is a request for continuation of the funding received under the DR decision for IDSM marketing funds for 2012.

Additional information regarding the role of statewide marketing and local marketing and the coordination between the two will be filed as part of the IOUs Statewide Application for Marketing Education and Outreach, as directed on Page 309 of the D.12-05-015, which states “In their August 3, 2012 applications for statewide marketing and outreach, the utilities should describe their expected roles and complementary strategies for statewide and local marketing efforts.”

5 R.07-01-041 Administrative Law Judge’s Ruling Providing Guidance for the 2012-2014 Demand Response Applications. Page 14. 12 Program Logic Model: Local Integrated Demand-Side Management Marketing